dave: welcome back to cavuto coast-to-coast.

stocks paralyzes as fed comments as rising bond yields a fuel recession fears following moves on wall street and what it means for retail investors. lee zeldin a rising star in the gop, his influence helped republicans secure a majority in the house, next or his career. everyday investors feel the fallout from ftx, the attorney involved in the class-action lawsuit against the company joining us, all that coming up on cavuto coast-to-coast. the house financial services can be holding a hearing on the ftx collapse. hillary vaughan on capitol hill with the latest and reaction from inside. >> reporter: ftx founder sam bankman-fried is in talks to extradite from the bahamas and bring him to the us for questioning.

investors that got fleeced are suing him in a class-action suit, the senate and house committee's announced hearings into ftx's fall from grace and bankman-fried is speaking out, regulators, in a direct message interview with fox he unloaded his real thoughts on what went wrong saying after regulators, they make everything worse, they don't protect customers at all, lawmakers disagree, top republican on the house financial services, detail me they need to act because regulators dropped the ball. >> after the meltdown of enron congress took action to address the legal failures and clarify our laws. we are at the moment it comes to centralized exchange with the digital acid ecosystem. that makes things worse. >> reporter: bankman-fried

admitted he made some mistakes, just not the ones you would think telling the reporter i up a big multiple times, my single biggest up, the one thing everybody told me to do, everything would be 70% fixed. if i hadn't and he said the mistake is chapter 11 bankruptcy. he says his claim that ftx wouldn't invest with customer money was factually accurate because they technically loaned cash to a different company founded by bankman-fried and he thought they had enough collateral to cover it. bankman-fried says sometimes life creeps up on you. dave: that is a polite way of putting it. as lawmakers investigate the collapse everyday investors are feeling the fallout. new studies showing of the retail investors who use crypto exchange apps, 3 quarters lost money on it, joining me is and

barry. through the cycle, john will talk about the cycle in a second. there's never a good time for financial collapse but coming right before the winds of recession blowing in i am wondering how it might ripple through the economy. >> reporter: if you look what bitcoin did, it captured the imagination particularly the younger retailer investor. this really shattered the confidence of investors looking for alternatives. dave: could install more than was happening, the ventures, venture capital in silicon valley? >> if you look back through 2021 somewhere between 6. 5, to 9. $5 billion a quarter invested 1/4 invested into the crypto

arena, 3 billion in the last quarter. dave: we heard news, mortgage rates came down, the bottom line is these layoffs are happening, all kinds of industries, not the subject of one industry, but banking layoffs going on. is the recession hard to stop right now? >> recently announced layoffs is the sign of things to come. 2023 with the rough year, we see monthly increases by payrolls disappear completely give way to monthly declines. a recent early october survey conducted by bloomberg has payrolls declining, 18,000 jobs

per month on average of 2023, looking at a much higher unemployment rate. dave: that doesn't include inflation. they hope it will come down with actions of the fed but if wages decline you have to add the cost of inflation. >> you would only hope, a reduction in payrolls dropping consumer spending. with a lower rate of inflation, history makes clear when you have inflation running, 8%, down 2%, is a recession, with layoffs at a higher jobless rate. dave: i was talking to fred smith a couple months ago, and labor markets around the world, what really concerns him was the lack of productivity and

the economy, the output by each individual worker has decreased so much, an overhang from the pandemic when people were stuck at home, you're not as productive when working at home but also lack of will to work. elon musk famously said we need a recession to get people back on their game, might some of that happen when people worry about their future? >> elon musk is pounding hard on getting people back to the office, it is key to creating anti-productivity. some of the pushback you've seen in the labor market, not coming to the office, some of those initiatives during covid, the employer has much more leverage to push through policies to see the productivity. dave: to put a fine point on it, the lowest productivity

coming down anytime since 1948, 4% drop in productivity and the less output per worker means higher inflation you have because you have fewer goods. >> this is a consequence of woke culture, woke thinking where you don't prioritize production anymore but worry about these social goals and your sense of well-being before you become concerned about making a productive contribution to society. this is a big problem with younger people. 2024 cohort looking at a drop by labor force participation rate, the deepest of any cohort down 2.4%, from where it was paris covid. dave: i get a sense and wants to fight back. >> we need to shift the way capital is our located. productivity has come up as a

result of investment and huge productivity increase driven by technological development. it is a slowdown in the pace of innovation. with stem, getting people in the age group. dave: starting in elementary school. >> they don't go with stem because it's more difficult to get a degree with psychology. productivity is suffering. dave: i want to end anna resilient note, we have green on the screen. jim bullard talked about interest rates up to 7%, those comments were going to kill the market. it shows the resilience of this market. it is resilient. >> it shows candor, decision-making from the

regulators, the market wants to factor, with there is uncertainty and lack of transparency. dave: good stuff, thank you so much. the economy bracing for a possible rail strike ahead of holidays. thousands of rail workers threaten to walk off the job over contract negotiations, lauren seminary has details -- lauren: a potential rail strike. we have supply-chain issues, the biggest unions, mostly engineers and smart td mostly conductors, half of the workforce out of 24 unions at 125,000 workers, coast to coast

they know the results on monday. they've been negotiating our contract since 2,019, covid messed everything up, talking to president biden, the white house intervened to deliver temporary contract which they have been working off of since. more or less a 20% pay raise over 5 years and by two years, it is estimated union workers would receive $11,000 immediately as a result. i've seen the messiah $60,000. union workers want more paid time off. as it stands now there are 12 unions, 7 unions ratified this deal, 3 smaller unions did not. it comes down to the final two voting today, to get a ratified contract officially in place. the big if, if they vote know what happened? congress can intervene but they are out for thanks giving and

don't return to the end of the month. that gives the union and rail companies two weeks to figure everything out. options to avert a potential strike extend the cooling-off period which means the new congress has to deal with it in the new year. years crossed we are not in this situation but these rail workers want better terms and might not get them. dave: saying to numbers of congress be careful what you wish for, now you've got to deal with this and that is just the beginning. new york congressman lee zeldin could have a leading role in the gop. what is next for the former gubernatorial candidate after the gop sees gains all over new york? ♪ ♪

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dave: nancy pelosi announces she is stepping down from leadership position in the house. lucas tomlinson at the white house with more on this.

>> president biden spoke to nancy pelosi before the announcement on capitol hill and the white house releasing a statement saying history will see she is the most consequential speaker of the house of representatives in our history with callous example how she embodies the obligation of elected officials to uphold their oath to god and company to ensure democracy delivers and remains a beacon to the world. overseas reporters were acting not about nancy pelosi but donald trump's big announcements that he will run again president in 2024. years biden's brief reply. biden returned to the white house around midnight to a divided congress after the gop took the majority winning the important 218 seat, house republicans leaders announcing one of their top priorities the new congress next year to launch an investigation into the business dealings of president's son, hunter.

>> we already have evidence that would say that resident biden was involved with hunter biden. we hold the bank records and that is our focus. >> not everyone thought that was a good strategy, they want the gop to keep the focus on issues like inflation, crime, immigration and the fall of afghanistan and origins of the coronavirus. is a bit of trivia. the only speaker of the house ever to become president, james polk. dave: i didn't know that, good answer, lucas tomlinson at the white house, lee zeldin's surge in the new york governor's race having a down ballot ripple effect helping the gop flip seats in new york, zeldin's future the talk of washington with several officials asking the congressman to run for some kind of leadership role.

the managing partner and lee zeldin media consultant, thanks for being here. he did lose the election became very close in a state not only that hasn't had a republican governor for 20 years but where you had 300,000 new yorkers leave for florida, who otherwise might have voted for zeldin. he could've won if those people stayed where they were but how does he use this political capital he now has? >> first we have to see why there was such political capital. senator tom cotton said this week that he saved the house of representatives for republicans. probably as many as 5 seats that went to the republicans in the house in new york strictly on the coattails of what lee zeldin was able to do, close race for governor which most people know rarely if ever happens in new york.

so people were impressed with the campaign he ran and particularly lee himself was very dynamic, the young leader who served his country, spent a tough on crime prosecutor but as a conservative who never ran from his conservative values in a blue state and was effective in doing that and people liked that so it is not a surprise that afterwards, where can he go now? probably what he has the most of is asking to look at potentially rnc chairman. it wasn't as good a year as republicans were hoping for, i don't think we were happy and 2018, 2020, or 2022. as a party we are saying how do we improve that in 2024? let's look at who has had some success and that's who we turn to. dave: there's a chairman, chairwoman who says she wants

to keep the job so would there be a fight between the two? >> it's too early to know that. i think lee zeldin is listening to people reaching out from across the country quite frankly, many are officials, many are members of the national committees, men and women of a national committee people who will ultimately vote. i think lee is somebody who is careful how he makes decisions so he's in the listening phase and frankly having trouble keeping up with all phone calls he's getting. dave: it is a glad hander job. lee zeldin is a warrior. he was a warrior in previous life in the military but also has that warrior background, seems to be much more of a man who is out to walk the streets

defending law and order et cetera. doesn't seem to fit the bill for the rnc. that's my impression. >> in addition to lee zeldin i have a few clients and there was certain disappointment that we did not have the ground game the democrats did and i think if i am donald trump running for president or whoever does in 2024 i want to make sure we improve on that and have equivalent to what the democrats are doing if not better. second of all we are poor in taking our message to younger voters. younger voters particularly generation the which is going to be age 18 to 26, 27 in the next presidential race are a big chunk of voters and we lost younger voters by 28 points in this election cycle. younger voters are the reason we did not take back the senate.

i think this party needs to make some changes in our ground game, how we message ourselves and recoupment of the type of candidates we have. that something lee zeldin would be good at. dave: he had a good run, he should be proud of a run and did a good job, thank you for being here, appreciate it. >> thank you for having me. dave: feeling the fallout from ftx, attorney of a plaintiff in the $11 billion class action lawsuit against ftx joining us after the break, you don't want to miss it.

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dave: ftx's new ceo speaking candidly against the company's founder sambankman-fried who opened about about the company's collapse. incredible read. charlie gasparino has his own perspective.

charles: would you give money to man but short pants, he got it from everybody. they were all living together. what is interesting is breaking news i want to share, us attorney from the southern district scrambling to bring the case quickly. i don't know if -- we have the holidays coming but they want to bring it before the bohemian officials bring it. that is what is going on. from what i understand from law enforcement officials who deal with law enforcement officials at the southern district they believe they have a case to bring against him. it would take a monumental change of heart for him not to be indicted. he has lawyered up, a

gentleman, paul wise one of the biggest law firms that handles criminal law. his lawyer, got to call into that, to mister bankman-fried, no response from the southern district but it is solid. it is race, the us authorities are under pressure given how bad this is, how it occurred under everybody's knows and escaped the sword of notice of this securities and exchange commission with the chairman meeting with this guy who escaped the commodity futures trading commission. dave: is there a chance all the money he circulated among democrats pay it off, that he got regulators to stay away so they couldn't see what he was doing? charles: a lot of his money went to democrats, they were on

the agricultural committee which had a stroke with the cftc which he wanted to regulate crypto because they were taking a lighter hand but that flies in the face of the growing conservative narrative the gary gansler is in bed with him, nothing is mutually exclusive. he wants a more harder look at crypto and harder regulation than the cftc but still met with the guy and bankman-fried, they were actually going through the motions of the sec to start and approved crypto exchange. most crypto exchanges are not approved by the sec. i think the best you could say about his campaign contributions as they influenced congress in terms of

pushing regulatory authority, it opened tremendous amount of doors for this guy. if you open the door to elizabeth warren you open the door to gary gansler, not that he did anything wrong, i don't have any evidence, but that's what we are talking about, very convoluted story. it is remarkable, 3 years, worth $30 billion, he influenced all these people in 3 years and maybe if it turns out this way, the most epic swindle of all time foot -- dave: some buddy coming up has a personal interest in what happens here. our next guest says the attorney of a plaintiff in the class-action ftx lawsuit, adam moscowitz, who precisely are you suing in this class action?

>> we are suing those entities that are not bankrupt because they would get bankruptcy protection but we are suing celebrity endorsers, sam, a lot of managers that were fired before the collapse happens because they are not going to get the automatic state protection. dave: let me ask about the celebrities, tom brady, stefan curry, larry david did those funny commercials, do we know what they were paid by ftx? >> we don't at this stage but the law is clear. this should have been registered security. when they tell the public it is a yield based account. if you keep the money with ftx you get 8% interest each month you are not trading in crypto. they are just holding your money. that is what was lost, $15

billion stolen from these investors, not a risky trade. everyone thinks they were trading crypto but they were keeping the money in this interest account that was stolen. the sec has found this type of account is security, should have been registered but these people know that if it is registered security will not take off and you will not gain $5 billion a year because you've got to sell it to the panic -- the public. dave: i've got no bone to pick for either side but would you take advice, financial advice from larry david? you are suing celebrities but anybody, there's the old buyer beware phrase, if you take advice from is a liberty how to invest your savings, is there a little buyer beware at work? >> you should see the internal

memos we've seen in our voyager litigation where companies say how can we quickly raise $1 billion? who are people that people trust with their money? the internal memos say we've got to get the celebrities because those are the people that really trust on all her decisions so we need to get tom brady and larry david and those people but there's law out there with floyd meriwether, if you promote crypto currency there's very clear law. you must disclose in the same commercial vote you are getting money, benefiting from this promotion you are doing. there is no dispute none of the celebrities said anything about it but if these are illegal investments, unregistered securities, anyone who promotes them is liable. like it or not, that's the law. dave: i know the law is the law but a lot of people warning

against buying into these exchanges because nobody was sure if the money, whether the funds were secure. we didn't know if they might be used for something else and that gets to the heart of whether there was fraud going on but i wonder the extent to which the question will come into play in a courtroom. >> that is why you have the sec and register securities with regulatory body so someone is watching securities. what sam tried to do a skirt the issue, this yield based account is security, he said i don't care. i will pay millions to promote it. i'm not going to register it. he was able to raise $14 billion in assets. that's illegal so people that are co-conspirators, crypto is risky but putting money in a company that has $14 billion

assets under management is a small bank. you are not buying the crypto. your keeping it on the apps. someone will pay for it. dave: don't know if you heard charlie gasparino but he said the us attorney's office is looking into whether or not they can put charges in before the bohemians try. what is the southern district doing? >> they are looking to do something. we heard rumors that sam was going to board a plane in the bahamas yesterday for dubai. that is when bahamian officials came in and took custody because he was going to flee but that is why we need the ruling, we will file more cases today, asking the court to determine immediately are these unregistered securities? the bankruptcy court is going to take years, millions of dollars and victims will never see it.

is this an unregistered security? if it is all the celebrities are liable. dave: stay in touch. you obviously have your nose to the news and we appreciate you coming in. keep us in touch and let us know what is happening. senator chuck schumer calling for amnesty for 11 million migrants. you won't believe why he wants this. we will tell you coming up. pai, it followed me everywhere. so i consolidated it into a low-rate personal loan from sofi. get a personal loan with no fees, low fixed rates, and borrow up to $100k. sofi. get your money right. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones ♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment

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dave: this is incredible. you've got to listen to it twice. senator chuck schumer has a personal solution to the low birthrate in the united states and guess what he says. it is amnesty for millions of illegal migrants, that's the solution. former dhs advisor charles marino joined me now. what do you make of this? it is essentially amnesty for 11 million people that he claims it is to deal with the low birthrate in the united states, go ahead.

>> if it wasn't so dangerous it would be laughable. first democrats claim the border needs to be open because it needs to be more humane for migrants and we see the chaos, lack of policy planning caused is anything but humane for migrants. now it is because of a population decrease and amnesty should be granted to everybody, the amnesty program has been exploited and corrupted by the cartels and human traffickers because the administration has no set protocols in place. it is anarchy at the border and we are seeing what the results are in deaths of migrants, increased crime at the border, increased fentanyl levels and record deaths of 18 to 45-year-olds. the chaos continuing with title

42 on the chopping block it is only going to get worse. dave: what about millions of immigrants, i've got to include members of my own family who have been trying to do it the old-fashioned legal way to get the green card and work your way in and you are on a path to citizenship. this would be jumping the line by the millions who came here illegally, not everybody came illegally but a lot of those 11 million did. the unfairness of it, democrats offsites -- talk about the fairness issue. is that fair? >> this is the consistency we see with this administration when it comes to law and order. they are anti-enforcement, anti-deterrence. those that are willing to follow the law and protocols that are in place start questioning themselves as to why. why are they waiting years to

enter the united states illegally when everybody can come in the through ports of entry, in between ports of entry, claim amnesty, be let into the united states and remain in the united states, for 5 to 7 years until their immigration hearings come up. this corrupted the entire process. democrats give this false choice to the american public that you can't have immigration reform without border security and that is false. you need to have border security. immigration reform is a process that can be worked out among members of congress but in the meantime while you're working on that, that border has to be secure. they are opening us up to so many national security risks that it is not even funny. dave: donald trump had an idea for a merit-based immigration

system, you combine a particular need we might have with particular immigrants who have skills we need at the moment and that would be the solution or one solution. a lot of democrats favor that idea as well. is that going to go anywhere? >> there should be bipartisan support because these are specialized areas that would allow migrants to enter the country to deliver their expertise to fortune 500 companies, academia and other areas in the private sector but they really need to get some type of order here. we need to pause and that is why donald trump's remain in mexico policy was effective, because it slowed down the migrants coming to the united states. it made them get into a key un articulate their claims of asylum. dave: i've got to run but final

question. for years now senator schumer said he's against general amnesty. now apparently he's willing to admit it because that's what he's calling for. why do you think that is? >> we are getting closer to the truth from members of the democratic party and the administration. the fact that they have no strategy is a coordinated effort to. they want this to happen. they want to change the demographics to achieve more popularity within the democratic party. you can see that and i don't think it will work out the way they think it is and it is only adding to the burden of major cities. dave: there are a lot of latino voters who are opposed to general amnesty having worked so hard to get here the legal way. mortgage rates with the biggest weekly drop in four years plus the warning about housing prices when we continue.

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well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

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my favorite holiday but not in the into inflation. the american farm bureau federation released an annual cost analysis that is not pretty. let's look at 3 of them must at 3 of the must-haves, turkey up 20% in cost, sweet potatoes my favorite side dish up 11% and pie crusts, can't forget dessert, up 26% in costs. they are saying the classic thanksgiving dinner will be 20% more expensive this year compared to last year. the american farm bureau federation says when it comes to the increased cost of turkey it is not just inflation but other factors playing a role. turkeys are smaller this year. there's a smaller amount of demand increased feed cost as well but i have good food news for you especially for those taco bell fans, starting today you can order the fan favorite that is going to roll the tape. ♪

>> it looks feeling, i will say. the entry was removed from the menu in 2013 but you can get it again, soft flour tortilla, with red sauce and cheese. and don't look too long, only available until november 30th. and other fast food favorite that is going away soon, this is the last week you can get the item, doesn't sound like either of us are running out for these items. i more of a chicken nuggets girl but a girl but if you are watching at home, time is running out. dave: i can't eat it the way i used to, it's one of my favorites. thank you very much.

the dallas fed warning home prices could plunge as much as 20% in us markets. joining us is managing partner pierre debas. is this about rising rates, the just came down a little bit but they are up compared to a year ago. >> reporter: rates have doubled, almost tripled in the last 11 months. we have a market, that is significant. the decline in values, we haven't seen impact pricing at all, we are predicting in the next in the first quarter, we

will see, other sectors of the economy, most predicting they are scaling back, potentially reductions and we will sit here next year with activity being sparked again and consumers see that, scoring relatively low. dave: you know who it is killing, the monthly costs are killing young homebuyers, many priced out of the market. they can't afford to pay 75% more in monthly costs for your house, upkeep, and mortgage from what they were a year ago. all these younger folks hoping to buy their first house are getting slammed. >> i can tell you what we are seeing, we have the largest

residential practice in the country and we are seeing higher uptick in cash buyers which is not related to homes because cash buyers see this as a chance to renegotiate pricing and we know this will be a want to 2-year phase with equity rates declining. demographics -- with part-time homebuyers saving everything they can with the average monthly cost of living, $500 a month, it is different quite honestly. i don't think that's the intended scaling up, reducing price appreciation activity in housing but that's the reality. dave: recessions are tough on housing because people won't buy a house if they are not sure they will keep their job

and we've had this job surplus that looks to be shrinking. >> it looks to be shrinking and that will be for the foreseeable future given the state of the economy. we are trying to predict what will happen with the labor market and next year. everybody is treading cautiously. that does impact housing. people in the job market are worried about job security and won't want to commit with liquidity and all that. dave: it will be a tough year. good to see you, thank you for being here. stocks dragging lower as the fed hints at more rate hikes to come. stay with us, more "cavuto

coast to coast". after this. ♪ ♪ . .

david: these markets are just about as flat as you can possibly get. look at dow jones, .00 halfway through the day. that does it for us on "cavuto: coast to coast." cheryl casone in for charles toda